Question
Sam computed a 95% confidence interval for from a specific random sample. His confidence interval was 10.1 < < 12.2. He claims that the probability
Sam computed a 95% confidence interval for from a specific random sample. His confidence interval was 10.1 << 12.2. He claims that the probability that is in this interval is 0.95. What is wrong with his claim?
a)Either is in the interval or it is not. Therefore, the probability that is in this interval is 0 or 1.b)A probability can not be assigned to the event of falling in this interval.c)Either is in the interval or it is not. Therefore, the probability that is in this interval is 0.95 or 0.05.d)The probability that is in this interval is 0.05
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
